Operation Desert Storm

Cannabis capital markets are bone dry.

Daily Recap

The investment that flowed into the cannabis industry as dozens of states legalized the plant in recent years has slowed to a trickle, pressuring some private lenders that have become the primary source of financing.

As private-equity and venture-capital firms stepped back from state-legal cannabis, pot cultivators and retailers turned to debt financing, which accounted for 92% of the roughly $1.2 billion in capital raised last year, said Frank Colombo at Viridian Capital.

U.S. cannabis operators are now staring at a wall of debt maturities on the horizon as they navigate slowing growth and have little to no line-of-sight on movement by the federal government to reclassify cannabis.

PA System

Bipartisan Pennsylvania senators are soliciting support for a forthcoming marijuana legalization bill they plan to introduce soon. Sens. Dan Laughlin (R) and Sharif Street (D) are once again teaming up on the reform proposal, as they have in past sessions.

“As these neighboring states continue to benefit from legalization, it is vital that Pennsylvania follows suit to remain competitive and prevent the outflow of tax revenue and economic opportunities across state lines.”

Hoos Zooming Hoos

In the coming weeks, Virginia Gov. Glenn Youngkin (R) will decide on how to respond to a handful of cannabis bills passed by lawmakers this year, including measures to legalize retail sales to adults, expand medical marijuana and clear criminal records for certain cannabis-related conduct.

Youngkin has 30 days to act on a bill once it reaches his desk. He can either sign it into law, veto it or allow it to become law without his signature. Lawmakers will reconvene on April 2 to consider overturning any vetoes.

Jersey Turnspike

New Jersey Gov. Phil Murphy (D) wants to hike a special tax on cannabis from $2.50 to $15 an ounce to fund social service and violence intervention programs with tens of millions of dollars in new revenue. That’s bananas.

Stocks & Stuff

It was another painfully quiet session in Cannaland as volumes continue to dry and the space is adrift. U.S. cannabis ETF MSOS finished the session +1.5% on—sneezes— $7M of notional volume. Quite the statement on the day the bellweather reports.

Below, we’ll call it like we see it, delve deeper into the debt dynamic, spot liquid green shoots, monitor evolutions in hemp market and hunker down for earnings.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional:

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